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B-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Mobile to issue 70,000 shares of 5%, $100-par preferred stock, and 110,000 shares of no-par common stock. B-Mobile completed the following transactions:
Oct 2 Issued 19,000 shares of common stock for equipment with a market value of $110,000.
6 Issued 800 shares of preferred stock to acquire a patent with a market value of $80,000.
9 Issued 15,000 shares of common stock for cash of $90,000.
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the B-Mobile balance sheet at October 31. The ending balance of Retained earnings is $92,000.
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